The East African Standard (Nairobi)

East Africa: Traders Lose Sh35 Billion to Counterfeit Goods

Benson Kathuri

25 January 2007


Nairobi — East African governments are losing over Sh35 billion as revenue due to importation of fake and illegal goods.

Kenya Association of Manufacturers Chairman, Mr Steven Smith said the goods mainly imported from Asia posed a danger to consumers.

To wrestle the menace and win the war once for all, a strong legal ground was a necessity, said the manufacturers.

A point of departure, Smith said, would be the enactment of the pending Anti-counterfeit Bill to battle the charging ogre.

"We have a responsibility to protect our consumers and keep local jobs," Smith said during a press conference organised by the Kenya Revenue Authority (KRA).

Some of the goods imported are batteries, pens, electronic goods, and pharmaceuticals.

Many fakes come from China and pass through Kenya to Uganda and Tanzania that are key markets for Kenya exports.

Late last year, Trade and Industry Minister, Dr Mukhisa Kituyi witnessed the destruction of two containers of imported pens purportedly manufactured by Haco Industries.

"Though China is our main source of raw materials, it should not be allowed to destroy our export market through faking our products," said Mr Polycarp Igathe, Haco industries managing director.

KRA Commissioner of Customs, Mrs Wambui Namu lamented that lack of a counterfeit law had made it impossible for the authority to prosecute the offenders.

"When we take action, the same is challenged in court and the offenders go Scott free," Namu said ahead of the International World Customs Day being marked today.

Meanwhile, software producer, Microsoft is concerned about the level of piracy in Kenya.

According to Microsoft anti-piracy manager for East Africa, Mr Abed Hlatswayo has claimed more than 80 per cent of the software used in the country is illegal.

Hlatshwayo now wants the Government to step up efforts to crack down on the pirates "who deny the Government revenues.

"Pirating software has become big business but the pirates do not pay taxes," Hlatshwayo said during a press conference in Nairobi yesterday.

"We will operate in countries that provide conducive environment that make it possible for us to make returns on investment."

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